Finance Ministry: Demonetization immensely beneficial to Indian Economy and People The Government of India decided to cancel the Legal Tender Status of Rs.1000 and Rs.500 denomination currency notes on 8thNovember 2016 with several objectives: (i) flushing out black money, (ii) eliminate Fake Indian Currency Notes (FICN), (iii) to strike at the root of financing of… Read More »

Status of the Return of SBNs – Reserve Bank of India (RBI) Annual Report 2016-17 The RBI Annual Accounts for 2016-17, at note XI.6.2 Liabilities of Issue Department – Notes Issued in para (ii) mentions – “Until June 30, 2017, SBNs were received by the Reserve Bank either directly or from bank branches/post offices through the… Read More »

Goods and Services Tax Laws, Concepts & Impact Analysis for Traders and Service Providers – 3 Aug 2017 by Sanjiv :Malhotra, Sanjeev Agarwal (Author) Yet another classic work from Dr. Sanjiv Agarwal and CA Sanjeev Malhotra analyzing the GST provisions in a comprehensive, analytical and crisp manner with suitable examples divided into three parts. Part A is spread over… Read More »

Cabinet approves promulgation of the Goods and Services Tax (Compensation to States) Ordinance, 2017 The Union Cabinet chaired by Prime Minister Shri Narendra Modi has given its approval to the proposal of the Finance Ministry to promulgate an ordinance to suitably amend the Goods and Services Tax (Compensation to States) Act, 2017. The approval would… Read More »

Q.50 What option shall be opted while clearing samples from factory to warehouse location: (a) No GST should be levied but corresponding ITC should be reversed (b) GST should be levied but GST (ITC) paid on samples cleared should be reversed at receiving warehouse location. Ans Depends upon the location of the factory and warehouse. If both… Read More »

Q.47 In reference to Section 15 of GST, CTT and STT are statutory levy under Income Tax. Is there any GST tax on another governmental Tax, SEBI Fees and Stamp Duty as per Various State Government rates? Ans As per Section 15 the value will be inclusive of all taxes except CGST, SGST, UTGST and IGST. So… Read More »

Q.46 Does Rental Income less than Rs. 20 Lakh per annum attract GST? Ans No. That said, where the rental income from a single property is less than Rs. 20 lakh but the aggregate rental income from various properties exceed rupees twenty lakh, the requirement for registration and GST payment will be there. Related GST FAQ… Read More »

Q.44 An USA based company provides services to its account holders spread worldwide. Whether services given by it would be covered under Section 13(8) of IGST Act? Ans If the place of supply is in India, the registered recipient will have to pay tax under reverse charge and if the recipient is unregistered, company will pay GST… Read More »

Q.43 What kind of facilities provided by employer to employee would be liable to GST? For instance, whether club membership provided will be considered as” service”? Ans The compensation to employees in the form of money is not a supply. However, fringe benefits are supply of goods or services and are liable to tax if not exempted.… Read More »

Q.42 Would tax be payable on sale of business assets on which no credit was claimed under GST ? Ans Yes provided the aggregate value of supplies is more than Rs. 20 lakh (Rs. 10 lakh in special category States). Related GST FAQ GST FAQ on Composition, Exports, Invoice and Returns , Job Work ,Levy Related… Read More »

Q.40 In case of job workers not operating under Notification 214/86-CE (i.e. registered under excise at present), whether they can carry forward the credit availed on RM/PM supplied to them by the principal manufacturer? Also is there any restriction on carry forward of the credit on input services distributed to them by the principal as ISD… Read More »

Q.39 Whether the job worker (who converts barley into Malt) has to charge GST from the Principal only on the Job Work charges or full value of goods, i.e. (Value of Raw Material + Job Work Charges)? Ans The job worker has to pay GST on job work charges only. Related GST FAQ GST FAQ on… Read More »

Q.37 Clarification is sought for the following under GST: Penal Interest on loans and advances Ans Penal interest is a consideration for tolerating an act and it is a supply of service and will be taxable. Related GST FAQ GST FAQ on Composition, Exports, Invoice and Returns , Job Work ,Levy Related Topic on GST Topic… Read More »

Q.35 How a service Provider can get input GST credit benefit in pure labour Contract under Input Credit? Ans He needs to use input for furtherance of business and should fulfill the conditions mentioned in section 16 of CGST Act, 2017. The input should not fall within the negative list provided in section 17(5) of the CGST… Read More »

Q.34 What are the provisions under CGST Act as to the eligibility of CENVAT credit of service tax on invoices which are received after the appointed date for the services received under the service tax regime? Ans ITC is available in terms of section 140(5) of CGST Act, 2017. Related GST FAQ GST FAQ on Composition,… Read More »

Q.30 Since our products are under 0% and we are using various services like telephone, professional charges for which we will be paying GST to our registered service providers and this amount will not be utilized towards any payment of outward goods. Are we eligible for refund on the services obtained and GSTN paid for the… Read More »

Q.27 Please clarify ITC Credit status for the following condition: On GST Deducted Commission for Distributor registered under GST Taxpayer? Ans Any deductions under TDS/TCS provisions from amount paid or credited to the supplier shall be credited to the electronic cash ledger which can be used for payment of tax. Related GST FAQ GST FAQ on Composition,… Read More »

Q.24 How can a trader avail ITC while selling goods/services to unregistered/exempted GST traders? Ans The fact that a registered person is supplying goods to an unregistered or exempted person has no consequence on availment of ITC by the supplier. Related GST FAQ GST FAQ on Composition, Exports, Invoice and Returns , Job Work ,Levy Related Topic… Read More »

Q.23 Clarification is sought on the following: Revision in GSTR Returns Ans Mistakes can be corrected in subsequent returns to be filed through amendment Table (For example Table 11 of GSTR-1). Such mistakes can be corrected till the due date for filing of the return for the month of September subsequent to end of the year or… Read More »

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